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Aston Lawyer, Solicitor

Category: Law

Satisfied Customers: 10180

Experience: Solicitor LLB (Hons) 23 years of experience in Conveyancing and Property Law

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My son paid a reservation fee of £1k on a new flat in a block

Customer Question

My son paid a reservation fee of £1k on a new flat in a block above a supermarket built by local developer. Price agreed for flat and he used property solicitor to take forward - searches indicated problem with planning permission being refused for entrance porch that has been built on pavement. Number of weeks went by waiting for clarification on this from their solicitors - suddenly their solictors wanted exchange in 1 day otherwise back on market - due to various concerns we couldn't agree to this and advised deal off and put back on market. We have been unable to get the reservation fee back as they argue that it was us that withdraw - any way of getting this money back ? Our property solicitor wrote 'tough letter' but no response in 6 weeks.

All Developers ask for a reservation fee of £500-£1,000 and their reservation agreement will normally state that this sum is not refundable in the event that the Purchase does not proceed. (some agreements state that half will be refunded, but I am guessing your Son's agreement does not state this). Therefore, as the matter is not proceeding, they are within their rights to retain this sum, despite the reasoning behind why your Son can not proceed.

Although morally they should refund your Son, legally they do not have to.

If your Son's Solicitor has been unsuccessful at getting them to take the moral stance, there is little you can do, unless your Son wished to complain and make a pain of himself directly to any site office they have on the Development, if indeed there is a site office!

I am sorry this is not the answer you were looking for.

If I have answered your question, I would be grateful if you could leave positive feedback.

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